India reported 6.4 per cent GDP on a year-on-year basis in the fourth quarter of the calendar year 2024. High-frequency indicators across various sectors showed buoyant rural activity in January. They see growth ranging between 6.6 per cent and 7 per cent in the next four quarters. Goldman Sachs noted that valuations still remain expensive for small and midcaps. The report expects higher private investments in renewable energy and related supply chains, localisation of higher-end technology components. India becoming a more meaningful part of global supply chains to support faster growth, the report said. The investment cycle is projected to be on a medium-term uptrend supported by government investment in infrastructure and manufacturing, pickup in private investments, and a recovery in the real estate cycle. The RBI is also now trying to ease policy rates to support the recovery of the economy. The Indian government remains focused on fiscal consolidation, even as the Indian government is trying to reduce its fiscal deficit. The 40-basis-point budgeted fiscal consolidation suggests that peak drag growth from fiscal tightening is likely behind. The central government capex spending is now expected to grow only at 7% in FY25 and at 10 per cent (YoY) in FY26. The HSBC report last week said that India’s long-term outlook remains strong.